It’s worth noting, he dollar was down 0.5% v the euro and is now up. Gold has coiled back a bit, off the highs. And markets are down 30-40 points from the early morning pop. Nevertheless, it’s a strong day and the following Yellen statement might have something to do with it.
For example, future policymakers may wish to explore the possibility of purchasing a broader range of assets. Beyond that, some observers have suggested raising the FOMC’s 2 percent inflation objective or implementing policy through alternative monetary policy frameworks, such as price-level or nominal GDP targeting. I should stress, however, that the FOMC is not actively considering these additional tools and policy frameworks, although they are important subjects for research.
Bear in mind, the Fed isn’t planning to do any of this stuff, in the foreseeable future. As former Fed’s Mishkin noted, a change in the Fed inflation target is a very long discussion, which would not be made on a whim.
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